"Don’t have your insurance broker explain it to
you; you need to read it word for word."

In addition, Moses encourages broker/owners to address
the question of who pays the deductible.

When a former client threatens litigation and you file
an E&O claim, someone has to write the check to the
attorney so that you can be properly represented. Is
that payment your responsibility or your agents? Most brokers
split the costs with agents, Moses says, but it’s
important that you have a clear policy that spells out
who pays the deductible in the case of a claim.

"When that first claim comes in, you’re going to
have a poor-me agent claiming they can’t pay the
deductible, even though they just collected a $6,000
commission," she says.

Clear rules will help keep you and your agents on the
same team in the event of a suit.

The full article, plus insights from real estate
brokerages on the latest Inc. 5000 list of fastest
growing companies, appears in the October issue of Real
Estate Broker’s Insider.